Narrative
Full Description
Project narrative
On March 6, 2014, the Chinese Government and the Government signed a preferential loan framework agreement for the National Broadband Network Project. Then, on April 11, 2014, China Eximbank and the Government of Mali signed an RMB 493,000,000 government concessional loan (GCL) agreement for the National Broadband Network Project. The estimated borrowing terms of the loan include a 20.6263-year maturity, a 7.6878-year grace period, and a 1.4896% interest rate. The loan agreement was ratified by Parliament on September 3, 2014 (Law No. 2014-045) after its approval on June 11, 2014 by the Council of Ministers. The proceeds of the loan were to be used by the borrower to finance a commercial contract (worth 35,213,172,169 CFA francs) between the Government of Mali and Huawei Technologies Co. Ltd, which was signed November 18, 2011. The project involves the laying of 1300 km of fiber optic cable along 3 roads: (1) Bamako-Kourémalé; (2) Mopti-Douentza-Gao; and (3) Markala-Niono-Léré-Niafunké-Goundam-Tombouctou. It also involves the establishment of a data center in Bamako, modernize the Government of Mali’s communication network, establish a videoconference system, create a video surveillance system to manage security risks and road traffic, and install surveillance equipment. Huawei Technologies Co., Ltd. is contractor responsible for implementation. Construction began in December 2015. The originally anticipated project execution period was 15 months.
Staff comments
1. The French project title is Projet Réseau de large bande national du Mali or Le Réseau Large Bande National du Mali. The Chinese project title is 宽带网项目. 2. This project is, for all intents and purposes, the second phase of the China Eximbank-financed Fiber Optic and Telecommunications Modernization Project (captured via Record ID#30652). 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Mali was 20.6263 years in 2014. AidData estimates the maturity of the China Eximbank loan that supported the National Broadband Network Project by using this figure. See https://www.dropbox.com/scl/fi/cujt9ufun0n79texgwmdr/February-2025-IDS-Extraction-Mali-s-Official-Sector-and-Private-Sector-PRC-Borrowings-and-Borrowing-Terms.xlsx?rlkey=51bkgjbp345u3409irrbpt8mm&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Mali was 7.6878 years in 2014. AidData estimates the grace period of the China Eximbank loan that supported the National Broadband Network Project by using this figure. See https://www.dropbox.com/scl/fi/cujt9ufun0n79texgwmdr/February-2025-IDS-Extraction-Mali-s-Official-Sector-and-Private-Sector-PRC-Borrowings-and-Borrowing-Terms.xlsx?rlkey=51bkgjbp345u3409irrbpt8mm&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Mali was 1.4896% in 2014. AidData estimates the interest rate of the China Eximbank loan that supported the National Broadband Network Project by using this figure. See https://www.dropbox.com/scl/fi/cujt9ufun0n79texgwmdr/February-2025-IDS-Extraction-Mali-s-Official-Sector-and-Private-Sector-PRC-Borrowings-and-Borrowing-Terms.xlsx?rlkey=51bkgjbp345u3409irrbpt8mm&dl=0